Euro Economic Health Fades Further, Investors More Expectant of - TopicsExpress



          

Euro Economic Health Fades Further, Investors More Expectant of ECB There was a wealth of surprisingly revealing fundamental developments for Euro traders through Monday’s session. While most were likely marking the initial Italian and final Eurozone and German manufacturing PMI figures (all disappointing), the revision to the Germany 2Q GDP figures and a private bond sale by Spain were significantly more remarkable. Though Germany’s growth update was a revision, it was issued with important details. Among those particulars, we learned that private consumption was weaker than expected (0.1 percent), capital investment plunged (2.3 percent) and construction collapsed the mostin 6 years (4.2 percent). These are the types of domestic avenues that can keep the economy trending lower. Meanwhile, Spain took advantage of the exceptionally low market rates the Eurozone has enjoyed as investors chase yield by issuing its first 50-year bond – for an incredible 4 percent coupon. This is yet another symbol of extreme complacency.
Posted on: Tue, 02 Sep 2014 09:00:00 +0000

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